RebeccaThurlow

Treasury Wine Chief Executive Michael Clarke said the acquisition will transform the firm's U.S. business into a "larger player of scale" in the luxury and masstige segments of the high growth U.S. market.

"The additional supply of luxury and masstige wine will be a game-changer for our U.S. brands, providing us with an immediate opportunity to step-change our growth in the U.S., Canada, Asia and Latin America," he said.

Treasury Wine Estates plans to largely fund the deal via a 486 million Australian dollar (US$350 million) share offer, with the balance funded by new U.S. dollar denominated debt facilities. Under the entitlement offer, shareholders will receive 2 new shares for every 15 existing shares held.

The deal also includes the assumption of capitalised leases of US$48 million, taking the total deal value to US$600 million, Treasury Wine said.

The acquisition is subject to certain regulatory approvals, including antitrust approval in the U.S., and is expected to complete in approximately three months.

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